Oil up above $106 after inventories report

NEW YORK—Oil prices rose above US$106 a barrel yesterday on positive US jobs data, despite a government report showing crude stockpiles increased less than expected last week. Benchmark oil for April delivery was up US$1.35 to US$106.05 a barrel in afternoon trading on the New York Mercantile Exchange. In London, Brent crude added US$1.69 at US$123.67 a barrel on the ICE Futures exchange.

Commodities and stocks rose markedly after The Wall Street Journal reported that Federal Reserve officials were mulling a new form of bond buying that will attempt to boost the US economy without accelerating inflation. Crude has jumped from US$75 in October because of diplomatic tensions with Iran, a major oil producer, and as US economic indicators including employment have slowly improved over the last few months.

AP